French environmental management services provider Veolia Environnement SA (EPA:VIE) said it agreed to sell its Moroccan water, wastewater and electricity services under concession to investment fund Actis Capital LLP in a deal worth some EUR370m (USD484.1m).
The services under the scope of the transaction, which Veolia entered into via Veolia Services a l’Environnement Maroc, are operated by concession companies Redal and Amendis.
The offload is seen to result in a reduction in Veolia’s debt by some EUR88m this year, the French company said.
The move, for which authorities have yet to give a final go-ahead, is in line with Veolia Water’s aim to shift its geographic focus and its growth plan based on higher added value solutions and operations, the vendor said.
Veolia added it also inked a three-year technical support contract with Actis, allowing for a smooth transition of the services.